September 25, 2020  
 
  Articles for Entrepreneurs  
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Q3 2009 Business Valuation Data

 

 

Sell My Concord, NC Business

We just received the latest Concord, North Carolina business valuation data for Third Quarter 2009.

Median Ask Prices for Concord, NC Businesses

If you are interested in trends in business-for-sale asking prices, here are the median asking prices for businesses in the Charlotte-Gastonia-Concord, NC-SC metro area for the last 11 quarters.

Quarter

Median Ask

Q1 2007

$312,500

Q2 2007

$273,000

Q3 2007

$300,000

Q4 2007

$350,000

Q1 2008

$325,000

Q2 2008

$300,000

Q3 2008

$325,000

Q4 2008

$300,000

Q1 2009

$275,000

Q2 2009

$250,000

Q3 2009

$249,950

As you can see from the chart above, Concord business-for-sale listings in Q3 2009 had a median asking price of $249,950.

That compares to a median ask price of $325,000 in Q3 2008. Given that Concord, NC median business asking prices appear to be dropping, it suggests that selling Concord businesses may be lowering their prices to make their businesses more attractive to buyers.

Revenue Multiples for Concord, NC Businesses

Here is how median revenue multiples are tracking in the Concord area, based on BizBuySell.com's economic data.

Quarter

Revenue Multiple

Q1 2007

0.77

Q2 2007

0.82

Q3 2007

0.82

Q4 2007

0.77

Q1 2008

0.79

Q2 2008

0.80

Q3 2008

0.85

Q4 2008

0.80

Q1 2009

0.78

Q2 2009

0.79

Q3 2009

0.76

In the Charlotte-Gastonia-Concord, NC-SC metro area, small companies will typically sell for 0.76 times the selling company's revenues. The data from BizBuySell.com indicates that is the mean revenue multiple for Q3 2009 in this metro area.

In other words, a business that has revenues of $150,000 might list for $114,139. Remember, however, that this is in fact an average for revenue multiples in Concord and surrounding communities. Some businesses will have higher revenue multiples and others will have lower revenue multiples.

According to BizBuySell.com, the median revenues for its Concord business-for-sale listings was $400,000 in Q3 2009.

As a reference point, the Q3 2008 revenue multiple was 0.85 and the median revenue for listed Concord businesses was $570,000.

Cash Flow Multiples for Concord, NC Businesses

The table below shows how cash flow multiples are trending in the Concord area, based on BizBuySell.com's quarterly reports.

Quarter

Median Cash
Flow Multiple

Q1 2007

3.41

Q2 2007

3.38

Q3 2007

3.47

Q4 2007

3.45

Q1 2008

3.41

Q2 2008

3.26

Q3 2008

3.52

Q4 2008

3.32

Q1 2009

3.53

Q2 2009

3.78

Q3 2009

3.69

As you probably know, cash flow multiples are another useful method to value a business.

For Q3 2009, the average cash flow multiple for listed businesses in the Charlotte-Gastonia-Concord, NC-SC metro area was 3.69.

So, a firm with cash flows of $110,000 might list for $405,970. That's only if the firm complies with the local average. Most businesses will not conform to industry- or area averages.

If you are interested in what cash flows are for a business in Concord, BizBuySell.com found that the median cash flow for Concord area businesses was $85,500 in Q3 2009. In Q3 2008, Concord cash flow multiples averaged 3.52 and the median cash flow was $107,207.

Number of Concord Businesses for Sale in the Dataset

The study data comprised 266 listings in the Charlotte-Gastonia-Concord, NC-SC metro area. Many of the businesses in the dataset are outside of Concord, but they are in the area and so are probably representative of Concord business valuations.

One year ago, in Q3 2008, the BizBuySell.com dataset for Concord spanned 227 listings. In a market where you would think fewer business owners would be selling, it's a bit surprising to see more Concord business-for-sale listings.

Should I Sell My Concord, NC Business Now?

If you are trying to decide if this is a good time to sell a business, hire a third-party business appraisal firm to determine a business valuation for the company. This exercise should give you much better insights on whether it's a good time to sell or not. A consultation with a qualified business broker will also be very helpful to you. This useful business selling advice comes from Domenic Rinaldi, managing partner of Chicagoland Sunbelt, a leading business brokerage firm.

Business Valuations for Concord, NC Businesses

If you are considering buying a business or selling a business and would like to look at completed transaction sale price comparables in the area, we suggest you try the BizBuySell.com Business Valuation Tool. Based on your specific criteria, you can modify the company dataset that creates business valuation estimates. Access to the tool is very reasonable -- costing less than $100.

BizBuySell.com's Quarterly Reports

The BizBuySell Insight Report is a nationally-recognized economic report that tracks trends in the business-for-sale marketplace. If you find these trends interesting, take a moment to visit BizBuySell.com Insights Report for additional information.

 

 

 

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